My final project consists of the study of different approaches in the applications of magnetic encoders. First, the general working principles are investigated, then a rotary and a linear position sensor is chosen, which both provide absolute and incremental outputs. PCBs were designed to breakout the ICs to standard pins. The chips, capacitors and pin headers were soldered to the manufactured PCBs. I continued my work with the design of the measurement environments. The goal of the rotary position measurement setup was to measure the angle position and the velocity of a rotating shaft. The linear setup is realized on a one degree of freedom track, where absolute and incremental position can be obtained. The signals of the sensors are processed by the Texas Instruments C2000 Launchpad. A program was written to display the information provided by the SSI and Quadrature outputs of the sensors. Laboratory measurements were made to validate my implementations. These were realized the following way: The absolute angle positions of the rotating shaft were measured on the SSI and PWM outputs of the sensor. These results were compared to each other. The velocity of the DC motor’s rotating shaft was measured at different, constant voltage values with two methods. During the linear measurements, the absolute and incremental signals of the sensor were compared to the values read from the millimeter paper attached to the moveable part of the system. The results were evaluated, and conclusions were drawn.